Tuesday, 23 June 2020

Expansion to UK public interest merger review


Expansion to UK public interest merger review

The Department for Business, Energy and Industrial Strategy (BEIS) has announced two measures to enhance the merger public interest review provisions of the Enterprise Act 2002.  The measures are designed to strengthen the resilience and national security of the UK.

There will be a new specified public interest consideration relating to public health emergencies. This will come into force on 23 June 2020.  The provision would allow the government to review and block mergers that would otherwise threaten its ability to deal with public health emergencies.

There will also be revised thresholds for mergers relating to artificial intelligence, advanced materials and cryptographic authentication.  These will allow public interest intervention on national security grounds. The statutory instrument on this provision will be laid on 22 June 2020 but will not come into force until it has been debated and approved by both Houses of Parliament.

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